Chapter9 Force Majeure and Arbitration .（课件）《国际贸易实务双语教程》同步教学（清华大学出版社）

Chapter Nine Force Majeure and Arbitration Learning objectives Know the consequences of force majeure events. Know the importance of arbitration in settlement of disputes and claim. Familiar with the issues to be considered in the negotiation of arbitration. Master the ways of stipulating force majeure clauses and arbitration clause in a sales contract. Contents Case study 1 Section 1 Force Majeure 2 Section 2 Arbitration 3 Key terms 6 Case Study A Chinese importer signed a contract with an Australian exporter for one million tons of wheat. The stipulated time of delivery was in May. Unfortunately, the harvest of wheat in many producing regions was short by 30% resulting from the natural drought in Australia that year. At the same time, Russia purchased wheat from Mexico in large quantity because of the severe shortage of food in Russian. This resulted in the price rising. Then, the Australian exporter proposed to extend the contract to the next yea, shall the Chinese importer agree with him? Analysis Actually the exporter in the case wanted to extend the contract with the excuse of Force Majeure, so the key to the matter is the confirmation of the short harvest and price rise as Force Majeure. Upon the above-mentioned information, the situation or market price rising and wheat shortage in Australia are not Force Majeure as the seller may purchase wheat from other countries for supply if it is short in Australia. So, the Chinese importer shall require the seller to execute the contract, otherwise lodge claim for compensation. Section 1 Force Majeure Definition An event that can’t be anticipated and beyond the control. Conditions of force majeure events Nature of force majeure clause Consequences of Force Majeure Events Postponement of the contract When the performance of the contract is delayed temporarily Contract shall be resumed after the force majeure event Termination of the contract When the performance of contract is impossible one of the party